Growth Seen In Sale Of Miami Ad Agency

January 9, 2001|By JEFFERY D. ZBAR Special to the Sun-Sentinel

Special to the Sun-Sentinel The proposed sale of 49 percent of Crispin Porter & Bogusky to a Canadian advertising group should help the longtime local shop grow beyond its regional roots and attract a higher caliber of national clients.

Monday's announcement from Toronto-based Maxxcom Inc. capped six months of discussions, said Chuck Porter, who will remain chairman of the Coconut Grove agency (www.cpbmiami.com). Porter also will become senior partner with MaxxCom, overseeing future acquisitions. President and partner Jeff Hicks, and creative director and partner Alex Bogusky, also will remain with the shop.

"My first objective is still to grow Crispin Porter & Bogusky," Porter said. Last year, Crispin had $15 million in revenues on $135 million in billings, Porter said. The agency handles such accounts as And1 sports apparel, Avmed and Shimano bike equipment.

The deal's cost, which Porter would not disclose, was estimated by The Wall Street Journal to be $10 million to $20 million. Part of the proceeds will be used to grow the 105-person Crispin staff and eventually acquire a West Coast agency to expand into the national market, Porter said.

In fact, being acquired has long been viewed as the best way to grow the business, he said. By having more staff and deeper capitalization, the agency -- whose stable of clients lacks a large national retail account -- could lure better accounts, he said.

"We've been approached by an awful lot of people over the last couple of years," he said. "Growth has never been defined by numbers. We just want to be in a position to work for bigger brands."

Crispin's high-profile work for the Florida Anti-Tobacco Pilot Program and the national anti-smoking education and marketing program, helped gain the shop national prominence. The agency was named Southeast Agency of the Year by Adweek Magazine last year.

Maxxcom (www.maxxcominc.com), one of Canada's largest full-service marketing communications firms, has been looking to expand, with acquisitions in the United States and Europe, Porter said. Maxxcom executives could not be reached for comment. Though the deal gives MaxxCom an option to buy the remaining 51 percent by 2006, Porter said both MaxxCom and Crispin executives are keen to let the ad shop retain its independence, he said.